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QUESTION
In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and control demand-pull...
In an economy, the government wants to decrease aggregate demand by $24 billion at each price level to decrease real GDP and control demand-pull inflation. If the MPC is .75, then it could increase taxes by:
A. $6 billion
B. $8 billion
C. $10 billion
D. $12 billion
